Kraken's UK managing director, Bivu Das, is advocating for the implementation of a Bitcoin exchange-traded fund (ETF) within the UK.

During an interview at the Digital Asset Summit in London, Das emphasized that Bitcoin ETFs, currently restricted in the UK, could present investors with lucrative opportunities.

Das remarked, "The UK has expressed its desire to become a crypto hub. Facilitating Bitcoin ETFs could be a fundamental step towards realizing that ambition."

He expressed concerns that the absence of such products in the UK might drive investors to unregulated jurisdictions, posing risks to both investors and the UK economy.

Bitcoin ETFs enable investors to gain exposure to Bitcoin's value without direct ownership of the cryptocurrency. These ETFs are traded on traditional stock exchanges, mirroring Bitcoin's price fluctuations.

In 2021, the UK's Financial Conduct Authority (FCA) prohibited the retail sale of digital asset derivatives, including crypto-backed exchange-traded products (ETPs). However, Das argued that the regulatory landscape has evolved significantly since then. He suggested that Bitcoin ETFs could alleviate regulatory concerns as investors wouldn't hold the underlying asset directly.

While the FCA recently greenlit the launch of crypto exchange-traded notes (ETNs), they're exclusively available to institutional investors, unlike in the US where Bitcoin ETFs are accessible to all. This move indicated a degree of openness from the FCA toward crypto investment products, albeit with warnings about potential risks for retail investors.

Das highlighted the surge in adoption of Bitcoin ETFs in the US following SEC approval in January, underscoring its legitimizing effect on Bitcoin within both crypto markets and institutional circles.

Daniel Seifert, CEO of Coinbase UK, echoed Das's sentiment, emphasizing the importance of offering consumers diverse investment options.

The FCA now faces the challenge of striking a balance between fostering crypto innovation and safeguarding retail investors from potential harm. Yet, with significant investments flowing into crypto ETFs, there's growing interest in expanding access to crypto investment products.